Startup Valuation Methods
What are Startup Valuation Methods? Valuing a startup is one of the most challenging tasks often required by financial analysts. In this article, we will discuss how to value a startup as well as some of the more popular valuation methods. Startups, in the most general sense, are new business ventures created by an entrepreneur....
Absolute Valuation
What is Absolute Valuation? Absolute valuation models calculate the present worth of businesses by forecasting their future income streams. The models use the information available in the financial statements and books of accounts of a company to arrive at its intrinsic or real worth. There are two types of absolute valuation models: Dividend Discount Model...
Held to Maturity Securities
What are Held to Maturity Securities? Held to maturity securities are securities that companies purchase and intend to hold until they mature. They are unlike trading securities or available for sale securities, where companies don’t usually hold on to securities until they reach maturity. Companies mostly use held to maturity securities to protect themselves against...
Available for Sale Securities
What are Available for Sale Securities? Available for sale securities are the default categorization of securities that companies decide to invest in for the purposes of benefiting their financial position. Unlike trading securities, available for sale securities are not bought or sold for the sole purpose of realizing a short-term capital gain. They may be...
Trading Securities
What are Trading Securities? Trading securities are securities purchased by a company for the purpose of realizing a short-term profit. Companies do not intend to hold such securities for a long period of time; thus, they will only invest if they believe they have a good chance of being compensated for the risk they are...
